Betterment in Accounting: What It Is, Accounting, Journal Entry, Example

Posted on December 27, 2022 By John

Assets include resources that companies use to generate revenue. These assets may come in different forms. For most companies, fixed assets are essential in providing a base for operations. However, these differ from other assets as they may require continuous expenditure. Sometimes, this expenditure may fall under betterment. Betterment in …

Algorithmic Trading System in Python, an Example

Posted on December 26, 2022 By John

Developing an algorithmic trading system that consistently generates profits can be a challenging task, as it requires a deep understanding of financial markets, trading strategies, and risk management. To ensure your system is successful, you must consider the following elements: data collection, analysis, and backtesting. In this blog post, we …

Do Commodities Lead the Equity Markets?

Posted on December 26, 2022 By Harbourfront Technologies

It is generally accepted that commodity prices can have an impact on equity markets, as the prices of commodities can affect the profitability and performance of companies in various sectors. For example, a rise in the price of oil may benefit companies in the energy sector, while a decline in …

Is the Momentum Anomaly Still Present in the Financial Markets?

Posted on December 23, 2022 By Harbourfront Technologies

In the financial markets, the momentum anomaly is a phenomenon in which financial assets that have had recent positive returns tend to continue performing well, while those with recent negative returns tend to keep declining. It is also known as the ‘momentum effect’ and has been observed in stocks, commodities, …

Pricing Options In The Real-World Measure

Posted on December 20, 2022 By Harbourfront Technologies

Option pricing is usually carried out in the risk-neutral world where the market participants are assumed to be indifferent between taking a certain payoff or investing in an asset with that same expected return. Mathematically, an option’s price is the expected value of its payoff in the risk-neutral measure discounted …

Trading Butterfly Option Positions: a Long/Short Approach

Posted on December 17, 2022 By Harbourfront Technologies

A butterfly option position is an advanced trading strategy that requires a combination of calls and/or puts with three different strike prices of the same maturity. It’s a non-directional options trading strategy that is commonly used when an investor believes that the underlying asset’s price will remain relatively stable in …

How Credit Risks Affect Momentum Strategies Returns

Posted on December 14, 2022 By Harbourfront Technologies

Credit risk is the probability of loss from a borrower or counterparty. It is also known as default risk and refers to the potential that an entity may not be able to meet its obligations when due. Credit risk can arise from various sources including individual borrowers, companies, government entities, …

Fractal Market Hypothesis: Quantification and Usage

Posted on December 11, 2022 By Harbourfront Technologies

The Fractal Market Hypothesis (FMH) is a theory that suggests that financial markets behave in the same way as natural phenomena and are subject to the same physical laws as found in nature. It suggests that financial markets are composed of similar patterns which repeat over and over again at …

How Accurate are Technical Indicators?

Posted on December 8, 2022 By Harbourfront Technologies

A technical trading system is a set of rules that define how to enter, exit, and manage trades in the financial markets. It is based on technical analysis which seeks to identify trends and patterns by analyzing past price movements. It includes precise criteria for when to buy or sell …

What is a Robust Trading System?

Posted on December 5, 2022 By Harbourfront Technologies

A trading system is a set of rules that define when to buy or sell a security. The purpose of a trading system is to take the emotion out of trading and help the trader make objective decisions. There are many different types of trading systems, but all systems have …